Business plan for a fitness center

Executive summary

Fitness Boot Camp (FBC) will aim to provide quality services to firms operating around Woodbridge VA. The camp will also focus on provision of cost effective services to ensure affordability by the local firms and thus ensure payment of the facility for the workforce and/or human resources by at least 90% of the firms in VA. Our business philosophy is based on the fact that exercise helps improve the overall efficiency of the employees and thus boost the resultant profitably of any given firm. Similarly, Fitness boot camp believes that provision of fitness services to employees helps in cost reduction as less provision s are set apart for medical allowances and schemes. FBC strategy is tied on the assumption that health as a condition of any employee is directly proportional to their productivity. Thus fitness Camp services will increase profitability of the employees as they are geared at promoting the health of their clients (Bates, 2008).

Competitive Analysis

Fitness Boot Camp will operate in a very competitive market with the primary competitors being Gold's Gym, Bally total fitness, Dale City health and sport club and Jazzercise among others. However, the secondary competitor will include organization which support the traditional ways of promoting health such as eating well and emphasis on herbal medicine as well as modern medicine. Fitness boot camp market sustenance amid existing stiff competition in the industry will be enhanced by the cost leadership strategy that will be adopted by the management of the Camp. Our service firm will ensure that the firm overcomes the competition from the primary sources by combining resources and capabilities to ensure a low cost structure is arrive at.

To ensure quality is not compromised, our company will use superior capabilities than those of primary competitors. Such capabilities will include the ability of the firm to offer and/or supply the product faster than other competing firms in the industry. Since these capabilities are not documented in routine programs of the firm, replication by other firms will be difficult. This will ensure that besides being easily affordable, the qualities of the services offered are better than those of competing firms in the industry. In an effort to offer a competitive price for our products, our firm will invest in assets that most competitors will find difficult to acquire easily. According to Gloor (2006), an optimal mix of the right investment and capabilities will therefore help our firm to fulfill its mission of providing quality and affordable services and thus retain market and remain in the competitive edge for a long duration.

Additionally, Fitness Boot camp will employ the strategy of product innovation to survive the stiff competition from secondary rivals and/or competitors. Since our product will target a wide market niche, Fitness camp management will endeavor to carry out product innovation to keep attracting new client and also to maintain the brand royal customers. Product innovation will help our firm to keep abreast with changes inn clientele tastes and preferences. This will help sustain the existing market especially among the generation X whose consumption and/or use of a product depending on the latest make in the market is perceived to high. Also, since consumer market is dynamic, adoption of dynamic strategies such as product innovation will help cut down or in extreme cases phase out our secondary competitors which are more static in nature (Gloor, 2006).

Marketing strategy

Our target market will largely comprise of organizations employees, manufacturing employees and other potential customers not included in the bracket of employees around Woodbridge, VA. Our customers Geographic's profile will include the immediate residents of Virginia region. Our services will also extend by a radius of about 45 miles outside the boundaries of Woodbridge to those clienteles who may require our services. This move will be directed towards increasing the FBC's total average revenue per annum. Similarly, we forecast a population of about 30,000 employees to form about 85% of the entire targeted population.15% will form the population of our other regulars who are not employees or whose service fee is not paid by their employer. Under demographic considerations, our company forecast that 58% of total number of clienteles will be composed of women while the remaining 42% will be taken by the male clients (Hartline & Ferrell, 2007).

Fitness Boot Camp will also target the average income earners with a salary range of about $20,000-$53,000. Target income group will not only enable our company break even but also earn normal profits in the short-run and eventually super-normal profits in the long-run. This income is favorable possibly because high income earners will prefer to use private Gym while low income earners in most instances earn wages which are not guaranteed employment benefits. Similarly, our clients who are unmarried will form about 70% of our clientele populace while the rest will be covered by individuals who are considered to be married. A wide gap variation in forecast between the married and the non-married persons is explained by the rising trend of increase in usage of fitness services among the non-married people than the married ones for stylish reasons. Moreover, 56% of total customers under the employees pool will come from the manufacturing sec tor will the rest will come from corporate organizations.

In considerations of the behavior elements of our clients, our company will focus on those consumers/or customers who understand the necessity of incorporating physical activity in their daily lives. Similarly, we will focus on those groups or corporations that have included working-out programs in their employee activity schedule in the last few years. This measure will help us separate the serious and non-serious contracts. Additionally, we will enter into contractual agreements with those clients category that are able to add value to FBC above payment for the services. This will help FBC avert the risk of default on our investment which would otherwise have a direct impact on our firm's profitability (Hartline & Ferrell, 2007).

Our services will include boxing, childcare, aerobics, circuit training, dance, tanning, treadmills, stationary cycling, stair climbers and selectorized machines among others. To remain in competitive edge our management will engage in massive product differentiation and innovation. Such an undertaking will help us adapt to the current dynamism in the health and fitness market. Provision of a variety of the services in the camp will also help us cover extensively the needs of all categories as well as age groups of our target group. This will not only help us increase sales revenue but also to maintain our perceived market share for a considerable period of time. Our prices will range from $200-$400 per person per session depending on our camp time schedules.

Fitness Boot Camp will adapt a pricing strategy with the higher limit of $400 to ensure that our services are easily affordable by our customers. It may be skimming the market approach since our service will be deemed to above the average in consideration to other providers. However, the price set is not very low so as not to compromise quality on the side of the customers. Similarly, the price set will not be very low in an attempt to deliberately compromise the FBC's profitability levels. Fitness boot camp distribution methodology will involve use of few or in some extreme cases no middlemen. This is because of the nature of the business whereby the customers will require specialized and/or customized services. Similarly, the provision of services of the camp requires specialized personnel which the middle men may not be willing to employ due to the high cost they carry. Also, since the market size is small, elimination of middlemen will help us to charge low price for our final product and thus achieve cost leadership which will further help FBC to remain competitive.

Our promotion activities will entail massive advertising, use of salespersons and sale associates and publicity among other promotional methods. Advertising will be carried through television and radio media. The estimated advertising budget will form about 20% of the overall cost which will be about $5,000.This will enable us attract new client base and also retain the brand loyal customers. Use of sales persons and sale agents' will enable the company to extensively cover the targeted market niche. Similarly, the promotional mode will also enable us increase income from sales because more people own up a product when they understand the level of utility and/or satisfaction they could derive from the particular product or service. This will be our premises in using salespersons that are health specialists as well. Publication of our business will be done in the papers and / or business journals. These publications will help reach the elite group of customers.

A location of fitness boot camp in the area of Northern Virginia has several advantages. First, the sales turnover will be very high owing to the perceived profile of the people who live in the region. Research shows that Northern Virginia is ranked among top popular regions in Washington and Virginia areas. Similarly, the region is ranked as having the highest income in Virginia thus FBC will practice price discrimination to generate more revenue. Second, the rate of crime is noted to have fallen in the region by about 17% between 2003 and 2008.This guarantees the security of investment and similarly add-up to the advantages of carrying out business in the region. Also Northern Virginia has the lowest level of unemployment ranging at about 3.2% by 2008 when ranked to other metropolitan areas. This means that the economy of the region is favorable as business profits are less likely to be affected with perceived fluctuations in the economy. Finally, the region has large notable companies which the fitness boot camp can benefit from in the chain value (Silk, 2006).


Fitness Boot Camp will focus on offering customized services to our clients.This will involve offering the services at the time convenient to the customers by employing strategies which are results oriented. We forecast the trend of market to be characterized by a break even in the third year of operation, an increase in revenue by 2% during the subsequent two years as the company tries to expand to new market niche by increasing in its SBU's (i.e. Strategic Business Units). The camps' management also speculates that the revenue will increase by more than 10% after the company stabilizes. The projected budget consists of a forecast in FBC's sales revenue at an average of $10,000 in the first year of operation and a corresponding cost of $10,000 for our venture to breakeven (Brown, et al 2007).

To achieve this, the management will put in place stringent cost allocation method and cost management approaches to ensure that actual costs do not exceed the standard and/or budgeted costs. Fitness camp management also considers expanding the business to other regions to increase the level of sales by regional sales and thus increase the profitability of the company as well. Some of the opportunities that will see FBC expand to various market niches include mergers and amalgamations with similar businesses in the industry, and forming franchise arrangement among others (Jacobs, & Stone, 2007). However, we expect several business threats such as possible downturn in economy due to the ongoing economic recovery which has affected the investment market adversely. Also during the first years trading we expect stiff competition from the business in the industries which are well established. Our main financial objectives will involve a trend in lowering the service delivery cost by at least 5% after the first year of operation and a deliberate move to cut down all cost by at least 7% after the first year of operations.


Bates, M. (2008). Health fitness management. Champaign, Illinois: Human Kinetics publishers.

Brown, R., Barrow, P. & Barrow, C. (2008).The Business Plan Workbook. London, UK: Kogan Page Publishers.

Gloor, R. (2006). Swarm creativity: competitive advantage through collaborative innovation network. New York, US: Oxford University Press publishers.

Hartline & Ferrell, O. (2007). Marketing Strategy. Boston, MA: Cengage Learning Publishers.

Silk, A. (2006). What is marketing? Watertown, MA: Harvard Business Press Publishers

Jacobs, R. & Stone, B. (2007). Successful direct marketing methods. New York, US: McGraw-Hill Professional Publishers.

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